BD-Nepal to discuss investment in small hydropower projects

Bangladesh-Nepal Joint Steering Committee (JSC) will discuss the ways to promote Bangladesh's private sector investment in small hydropower projects in Nepal next month in Kathmandu.
Both the countries agreed to work on the issue at a minister level meeting between Bangladesh State Minister for Power, Energy and Mineral Resources Nasrul Hamid and Nepal's Minister for Energy, Water Resources and Irrigation Pampha Bhusal on Tuesday.
"This time we are focusing on Bangladesh's private sector access to Nepal's hydropower and power export to Nepal in winter period," Power Cell DG Mohammad Hossain told the Daily Observer on Tuesday following the meeting.
He said Dhaka and Kathmandu had already signed a memorandum of understanding (MoU) for cooperation in the development of the power and energy sector.
"Now we are talking
about the promotion of G-to-G and private sector investments, grid connectivity, power efficiency and investment in renewable energy issues."
According to the Power Division, Bangladesh-Nepal Joint Technical Committee has identified 20 small potential hydro projects areas in Nepal. The committee feels that it could be an area for private sector investment.
Hydropower is the main source of energy in Nepal. The country status report showed that Nepal's energy sources are supplied mostly from traditional resources such as firewood (75 percent), petroleum products (9.24 percent), animal waste (5.74 percent), agricultural residue (3.53percent), electricity (1.47 percent), and other renewable resources (0.48 per cent).
Nepal Electricity Authority (NEA) has a total installed capacity of about 746 MW and 26 MW operating from mini and micro-hydropower plants in the hills and mountains of Nepal. There is a significant energy deficit.
Nepal has a theoretical potential of generating 83,000 MW of hydropower, out of which 42,000 megawatt (MW) is economically feasible, which it can export. But these entire amounts are in book. If it wants to export any amount to Bangladesh or India it needs to develop the infrastructure first.
Another issue is very challenging - the distance between Nepal and Bangladesh is 22 km. The distance by road from Banglabandha in Bangladesh to Kakarbhita in Nepal is 39 km. While Nepal and India work towards building a transnational grid in the region, Nepal and Bangladesh are working together in utilising the grid, building greater regional integration.
Through this grid line, Bangladesh has expressed interest to buy 9,000 MW of electricity from Nepal by 2040, according to the Power Division.
The second JSC meeting discussed four specific issues that include (a) allowing corporate investment in hydro projects, (b) enhancing energy trade and investment (c) grid connectivity incorporating India as a party and (d) increasing cooperation in sharing knowledge in power efficiency programme and investment in renewable energy in Nepal, a senior official earlier said.
Bangladesh, Nepal and GMR Group of India, have been working to materialize a 500 MW of electricity export to Bangladesh from Nepal's Upper Karnali Hydropower Project for the last seven years. Bangladesh also signed a preliminary contract with an Indian company, GMR Energy, to import electricity from its power project in Nepal.
Mr. Hamid said infrastructure development in Bangladesh had increased the country's electricity needs, and that Bangladesh is keen to import electricity from Nepal and Bhutan. Bangladesh private enterprises are also interested in investing in Nepal's power sector, he said.
We also discussed cooperation for the development of home solar power systems in Nepal.
Nepal has proposed to export 200 MW of electricity to Bangladesh utilising the existing power-transmission through India.
During the third Bangladesh Nepal JSC virtual meeting on September 14, 2021, discussions involved the progress of importing 500MW of electricity from under-construction 900MW GMR Upper Karnali Hydropower Ltd but the project has been progressing at a snail's pace since the pandemic started.